Zelio E-Mobility, a rapidly expanding electric two and three-wheeler manufacturer, has received board approval (subject to the approval of the shareholders, the in-principle approval of BSE Limited and other statutory / regulatory approvals) to raise up to ₹167.96 crore through a preferential issue of equity shares and convertible warrants. The proposed fundraise is aimed primarily at supporting the company’s next phase of expansion across India.
The BSE SME listed company proposes to issue up to 9.73 lakh equity shares at ₹853 per share to four non promoter institutional and private investors, aggregating nearly ₹83 crores. The allottees include Motilal Oswal Financial Services at ₹40.1 crore, Calliope Capital Advisors LLP owned by Mr. Navin Agarwal at ₹31.4 crore, Param Value Investments, owned and controlled by veteran Indian equity investor Mukul Agrawal at ₹8.5 crore and Hem Growth Opportunities Fund at nearly ₹3 crores.
Simultaneously, the board approved the issue of up to 9.96 lakh convertible warrants at ₹853 each to promoters Niraj Arya, Deepak Arya and Kunal Arya, aggregating nearly ₹85 crores, with 25% of the issue price payable upfront and the balance 75% payable at the time of conversion, within 18 months from allotment. Given the issue size, SEBI registered Brickwork Ratings India has been appointed to monitor utilisation of the proceeds.
The proposed fundraise also comes as Zelio continues to strengthen its investor base, with Motilal Oswal Financial Services and investor Mukul Agrawal having been key investors in the company.
The company has simultaneously been expanding its manufacturing footprint, with three plants now operational across Haryana, Tamil Nadu and Odisha. Its Ladwa facility in Haryana spans 2,63,450 sq. ft., while the Coimbatore facility covers approximately 39,000 sq. ft. and the Cuttack facility approximately 30,500 sq. ft. Zelio is also developing a new three-wheeler manufacturing plant in Patan, Haryana, with the proposed capital expected to support its development and wider expansion across India.
Commenting on the development, Kunal Arya, Managing Director, Zelio E-Mobility, said, “Our next phase is about building the capacity and market reach needed to serve a much larger customer base across India. The proposed fundraise will give us greater room to expand our manufacturing footprint, strengthen our distribution network and accelerate the development of our upcoming three-wheeler facility in Patan. We have built the business with a focus on profitable growth, and the priority now is to take that foundation into more markets while continuing to invest in the capabilities needed for scale.”
The proposed fundraise follows a strong financial growth trajectory. Zelio’s revenue increased 76.28% year on year to ₹303.54 crore (standalone revenue from operations) in FY2025–26, while its revenue CAGR stood at 121% over the last four years. The company has remained profitable since inception. It was listed on the BSE SME in October 2025 at an issue price of ₹136 per share, through which it raised ₹62.83 crore through a fresh issue (the total IPO size being ₹78.34 crore, including an offer for sale of ₹15.50 crore), and has since seen significant movement in its stock with current price of ₹1,036.20.
The company currently has a network of more than 400 dealers across 25+ states and is targeting 550+ dealerships by FY27. The planned expansion is intended to deepen its presence across existing markets while opening up additional markets for its electric two and three-wheeler portfolio.
Zelio will seek shareholder approval for the proposed preferential issue at an Extraordinary General Meeting scheduled for October 20, 2026. Shareholders will also consider proposed related party transactions of up to ₹50 crore each with Torque Innovation EV, AVR Auto Industries, Jai Bharat Engineering Tools, Jai Bharat Auto Components and Rajdhani Machinery Store. The preferential issue is also subject to the in-principle approval of BSE Limited and other statutory / regulatory approvals as may be required.
